Goldman Sachs issue a long USD/JPY trade recommendation

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Goldman Sachs issue a long USD/JPY trade recommendation

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</p><ul><li>Goldman Sachs likes long exposure in USD/JPY in spot targeting a move towards 143.</li><li>Not only is positioning now appearing more neutral, we also see a fundamental reason to expect renewed Yen weakness...The Bank of Japan may also be preparing to shift its current YCC policy at some point next year, which would be positive for the Yen in our view, and our economists now see possible adjustments in 2023. However, outweighing these risks, our rates strategists believe that the sharp downward repricing of medium- and long-run rates for this cycle appears overdone given current data (and our economists' projections) and thus should reverse," GS notes.</li><li>"Therefore, we are issuing a new trade recommendation to go long USD/JPY over a 1-2 month horizon with a target of 143 and a stop of 132," GS adds.</li></ul><p>---</p><p>Note that the Bank of Japan meet next week, December 19 and 20. The usual nothing burger is expected (I'll have a more detailed preview a little later ;-) ) </p>

                This article was written by Eamonn Sheridan at www.forexlive.com.

Source: Goldman Sachs issue a long USD/JPY trade recommendation

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